Europe’s Morning MoneyBeat: Strong US Close Should See Holiday Mood Endure

Local mainboards are tipped to find buyers at the open thanks to another strong finish on Wall Street Friday, notably for the Nasdaq index.

The latest U.S. GDP data are being taken as a clear vindication of the Federal Reserve’s decision to taper its bond buying program in January, and investors are now looking forward to the sort of corporate profits which might in turn vindicate this year’s strong stock rally.

There’s not a lot of domestic data for those European players who haven’t yet succumbed to holiday torpor, and the Nikkei was also closed Monday so won’t give its customary lead. However die-hards will hang on for U.S. personal income and spending numbers, along with the University of Michigan’s consumer sentiment poll, both of which will see daylight in the European afternoon.

According to the spreadbettors, the DAX is tipped for the best of it at the open, forecast to add about 30 points. The FTSE and the CAC are only expected to manage about half that.

Watch For: Italian consumer confidence, then it’s all about the U.S.. Personal income and spending data, the Chicago Fed’s activity index and the University of Michigan’s consumer sentiment survey are all due.

By David Cottle and Peter Nurse

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